Home » Companies » The Avenues Khobar Project Secures $1.16 Billion Funding To Develop First Phase
The Avenues Khobar Project Secures $1.16 Billion Funding To Develop First Phase

The Avenues Khobar Project has secured $1.16 Billion in funding to develop the first phase of
this highly anticipated development.

The Avenues Khobar is to be located in a prime location in Khobar at the intersection of King Saud Road and Prince Sultan Road close to King Khalid International Airport

The Development led by Shomoul Holding company is due to feature 8 shopping areas, special entertainment spaces, hotels and parking for over 6,000 vehicles.

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Overview of The Avenues Khobar 

Image Credit Shomoul

The company, a branch of Mabanee, a real estate corporation based in Kuwait, will finance “The Avenues Khobar” through an Islamic financial facility agreement that spans 12 years.

Shomoul Holding Company, established in 2014, is a joint venture of three leading firms from the Middle East. The partnership includes Mabanee Company from Kuwait, a titan in the real estate industry and a game-changer in the tourism and retail sectors.

Al Fozan Group, based in Saudi Arabia and a dominant force in the retail, manufacturing, commercial, and real estate industries, is also a part of this enterprise.

The contract is designed to fund the initial stage of The Avenues Khobar initiative, containing a shopping complex and versatile skyscrapers.

The Avenues Khobar Project

Image Credit Shomoul

Saudi Arabia’s tourism sector is rapidly evolving, with various projects underway to enhance the Kingdom’s appeal as a global tourism destination. One such venture is the ambitious Avenues Khobar project.

Image Credit Shomoul

The Avenues Khobar project, worth SAR7.2 billion, significantly enhances tourism, shopping, entertainment, and leisure offerings in Saudi Arabia’s Eastern Province. This mixed-purpose endeavor is located northwest of the intersection of King Saud Road and Prince Sultan Road.

The development aims to provide a unique attraction and entertainment point for the region’s residents and visitors, contributing to the Kingdom’s tourism sector’s growth.

The Avenues Khobar Project Features

Image Credit Shomoul

The project has a total leasable area estimated at 170,000 square meters. It features 8 shopping areas, 10 cinemas, and specially crafted entertainment spaces. Additionally, it includes two multi-use towers offering a hotel, conference halls, office spaces, and accommodation for over six thousand vehicles.

Image Credit Shomoul

Furthermore, the project will incorporate modern designs reflecting the Eastern Province’s character, adhering to the highest environmental and energy conservation standards. The Avenues Khobar is scheduled to open to the public by 2025.

Role of the Tourism Development Fund

Image Credit Tourism Development Fund

The Tourism Development Fund, established in 2020 with a capital of $4 billion, played a crucial role in providing the loan for the project. This Fund supports the advancement of the tourism sector in Saudi Arabia, providing viable financing solutions.

The Fund also leverages its extensive network of partners, including government agencies and financing institutions from the public and private sectors. It supports operators and service providers in Saudi Arabia’s tourism sector.

Vision of the Tourism Development Fund

Image Credit Tourism Development Fund

The Tourism Development Fund’s vision focuses on achieving the goals of the National Tourism Strategy. It aims to create opportunities across the entire tourism value chain, benefitting private sector investors with a focus on long-term sustainability.

Impact on the Tourism Sector

Image Credit Shomoul

The Avenues Khobar project is expected to impact Saudi Arabia’s tourism sector substantially. It seeks to support enterprises and projects contributing to the tourism sector’s growth and development.

Image Credit Shomoul

The project is anticipated to provide more than 10,000 jobs in the retail, entertainment, and service sectors in the Eastern Province. This will significantly boost the local economy and offer investment solutions specifically designed for investors.

Leading The Way

Image Credit MeTenders

Saudi Arabia’s tourism sector is poised for significant growth and development, with initiatives like the Avenues Khobar project leading the way. With massive financing secured and construction in progress, the project will enhance the Kingdom’s tourism, shopping, and entertainment landscape. 

Image Credit Shomoul

Additionally, Shomoul, a subsidiary of Mabanee, has likewise constructed “The Avenues Riyadh.” This development is located in Riyadh’s northern section and covers a vast 387,654 square meters of land.

It represents a significant step towards achieving the National Tourism Strategy’s goals, fostering sustainable growth and long-term prosperity for the Kingdom’s tourism sector.

Ritz-Carlton Al Khobar Resort

Image Credits Retal Development

A recent collaboration between the Tourism Development Fund and RC Beach Real Estate Fund, based in Riyadh, aims to boost tourism and hospitality in Alkhobar. Their joint venture will oversee the creation of Ritz-Carlton Khobar, marking the city’s introduction to beach resorts.

The resort, overlooking the Arabian Gulf, marks the Ritz-Carlton’s debut in the eastern region of Saudi Arabia. Ritz-Carlton Resort is coming to Al Khobar, thanks to Saudi Arabia’s Tourism Development Fund, and is due to feature 130 Luxury Hotel Rooms and suites with 48 chalets and upscale restaurants.

Keep Reading: A New Ritz-Carlton Resort is Coming To Al Khobar Thanks To Saudi Arabia’s Tourism Development Fund

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